My little piece of peace

There is some confusion here in inflation and the value increase of some particular item like property. Not all things go up in price.

Your car does not go u in price or your washing machine .

Granted we have had an increase in property price and purchase of it is made easy by mortgages set up for that very reason.

Sub prime credit is what killed it, and us, and the rest of the world. This same thinking that you can borrow what you want and the price increase of your house will cover it has put many people in serious difficulty. You have short memories.



That is not inflation,--that is shortage of houses driven up by market demand.

Now there is little money available, banks want 60 % down and if you over 50 forget it and a normal family can not afford so where is property going you think.

Past performance is not a guide to the future. Most people live in a house they could never afford to buy.

 

Hi Frosty, which is an inflationary bubble driven by greed, is another way of looking at it... Just the same event looked at from a different perspective...

except in some cases - all depends. . . . . . . . . Sub Prime credit blew that bubble up faster, to burst bigger - ain't over yet as sub-prime collateral-damage is well hidden and still being uncovered... The consequences of that type of play is yet to be fully realised...

http://kingworldnews.com/kingworldn...old_As_Governments_Become_More_Desperate.html - - - - More than "fun and games" if you are inclined to believe that this bloke is even half right...

 

And ---- your house going up by 8 times does what--- Unless your sell and live up a tree somewhere nice you cant use the value because buying another house has also gone up by 8 times.

Only person to gain from this nonsense is the local council that charges services by rateable value and the lawyers cut and the agents 2% and of course in UK stamp duty and capital gains . You have made nothing

 

Or sell out and cash up ready for the collapse that surely follows... Buying that totally useless stuff (gold) would have returned better than any other investment in your own currency in the last year, 5 years 10 years or 20 years as best as I can tell... but hindsight always allows us the luxury of 20 x 20 vision...

 

correct - that is the problem.
Property has so many hidden costs that it has killed the deal
rates and taxes
you always pay a minimum connection fee for electricity even if you used none
MAINTENANCE - the bigger the house the worse it gets
Industrial and commercial property ONLY has an occupation rate of around 70% if you are lucky (some as bad as 20%)
Here by us residential property is OUT - they pay the deposit, move in, and then it takes you six months to get them out (white and black people) in the process they stuff up the house.
Blocks of appartments are no better.

 

http://en.wikipedia.org/wiki/D'Entrecasteaux_Islands Where I can relax and enjoy life in the slow lane...

 

one big advantage of property is that when it increaeses in paper value, you can use this theoretical increase to borrow even more money from the bank for a fast new BMW !!

Yee HAww......IM RICH !!!!!!!!!!!!!!!!!!!!!!!

Naturally when property prices fall and your BMW get old and depreciates your whole house of cards collapses.

But at least it was fun while it lasted.

 

Completely agree with you on this one.

A lot of people I know cashed out of Sydney - most expensive city in Australia - and moved somewhere cheaper. That basically is the only way to 'win' from the inflation in house prices.

Their children, however, are screwed.

I'd love to see massive deflation in house prices but I built mine to live in, not as a speculative investment.

PDW

 

I also agree, which is why i commented on strategies to *maintain your wealth* rather than loose it to inflation.

During periods of high inflation, having money sitting in a bank account or cash in a safe is about the worst thing you can do... 10 years from now, that cash wont afford you anything...

 

When our busy schedules are no longer mutually exclusive, id love to head up there mas... if not on your boat, im sure as **** taking mine up there...

Btw - your composite tube has arrived...

 

Hi Groper,
You will be most welcome... Was the '****' for s41t or fcuk? still have several "irons in the fire" awaiting a reply... What they don't realise is that I would go there and work for "local wages" - - Mainly for the challenge...
177834

 

100% correct - TO MAINTAIN YOUR WEALTH = NOT FOR GAIN

 

All very clever stuff except past performance is not a measure of the future.

3%--3.5% ( sterling )clear PA is not too bad--thats chickens counted no tax, you know what you have.

If I thought I would live till 150 I would re consider--and yet invest in what,---stock market --Japanese yen. NZ gives good interest but ***** exchange rate. You wont do better than 3% and could do a darn site worse.

As the Chinese say "if you dont know what to do,-- do nothing"

What we could do with is nuts and bolts plan not just generals we all know about. I can get the wife to tell me how much I could 'have' made if I bought this and that.

I have a few rich buddies that have lost money on the stock market in the name of Trading, I know one who shot himself. They tell me im being eaten by inflation while they are giving it away.

I plod on with 3% they laugh at me and I laugh at them back. They have less this year than last, I always have more this year than last, whos right. After all the messing --risk , brokers fees and taxes, telegrapic tranfers they make 5% IF THEY ARE LUCKY.

Thing is it used to be 16% I remember those days, it will come back, it has to. If you hold your finger over the end of the pipe for long enough your will get a big flow when you take your finger off.

 

Now is the time to think carefully of ones personal position in the mid-to-distant-future - something like 5 to 15 plus years... Something like buy some land and plant some trees on it and nurture your trees... They may be fruit bearing, for milling, to make a fine home, speciality to make carvings, furniture or hardened to make fence posts - or burnt to make charcoal... - in the clearings where grass may grow, plant vegetables or fence off for poultry or whatever... GROW STUFF...

 

Every one to his own .. I only have to look at a plant and it dies immediately.